MILAN — High-end Italian design furniture firm Natuzzi’s industrial plan for 2026 and 2028 and the fate of more than 400 jobs remain in limbo.
On Monday, the nation’s Ministry of Enterprises and Made in Italy said the third round of talks held by the ministry between trade unions and the Bari-based high-end furniture firm ended without a resolution.
“Although there is no scheduled date for a new meeting, both the company and the unions, with differing words and nuances, hope for the resumption of dialogue,” the ministry said in a note published on its website on Monday.
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Natuzzi Group, which produces sofas and other furniture at its facilities in Puglia, Basilicata and Friuli Venezia Giulia, Italy, as well as Romania, said the industrial plan is crucial amid a challenging macro and geopolitical environment.
“The 2026-2028 industrial plan proposed to institutions and social partners remains, for the company, the strategic response to the need to address the current significant geopolitical and economic instability and to adapt its business model in response to a global scenario undergoing profound transformation,” Natuzzi said.
Natuzzi, which has most recently worked with designers like Karim Rashid and Fabio Novembre, currently employs about 1,800 people and said the industrial plan would affect the future of more than 400 employees, which the ministry said were “close to retirement.”
“The company, emphasizing the difficult economic and financial situation of the group, reaffirmed the conditions for an agreement: the closure of the Jesce 2 site and the sale of the Ginosa plant…the voluntary exit of around 400 workers close to retirement, and the reassignment of at least 300 additional people to companies in the area,” the note said.
The Apulia unit of the Fillea Cgil trade union stated layoffs would total 479 and would damage the integrity of Italian production.
“We hope that the next steps by the company will move in the direction of responsibility,” Italy’s Fillea Cgil said on its Instagram.
Natuzzi’s industrial plan involves a 50 million euro-investment for the 2026 to 2028 period.
Expansion Amid Turmoil
Natuzzi distributed its collections worldwide through a global retail network of about 565 stores and 687 wholesale partners at the end of 2025. According to the industrial plan, 72 openings with business partners were slated for 2026.
Last November; however, Natuzzi developed and initiated a reorganization and staff reduction plan to boost productivity and efficiency in the face of a drastic decline in purchases and in the markets where it is most active, the ministry said.
Natuzzi’s founder and chairman Pasquale Natuzzi Sr. started his career in Matera, Italy, in the 1950s. The firm’s strategy has been focused in part on the Middle East region. Natuzzi reopened its Riyadh store on King Fahd Road in July 2024.
In November 2024, Natuzzi unveiled a new residence on Dubai’s artificial archipelago Dubai Islands, created with its own vision, to house its upscale couches and beds.
At the time, the firm said it would become the first Italian design brand to create its own residential project.
Named Natuzzi Harmony Residences, the nine-story building was envisaged with Mediterranean and Middle Eastern inspired high-end architectural and interior elements.
NYSE Compliance Risks
Natuzzi is listed on the New York Stock Exchange under the ticker NTZ. Over the last year, its shares have lost 33.25 percent. In January, Natuzzi received notice from the stock exchange stating that its 30 trading-day average market capitalization and its last reported stockholders’ equity as of Sept. 30, 2025, were each below $50 million, and therefore no longer in compliance with NYSE’s listing standards.
Pursuant and subject to the NYSE’s rules, the company has 18 months from the receipt of the notice to regain compliance with the NYSE’s minimum requirements for market capitalization and stockholders’ equity, subject to the NYSE’s receipt and approval of a plan submitted by the company demonstrating how it intends to regain compliance with the NYSE’s continued listing standards. Natuzzi said it is currently considering a strategy to return to compliance.
Next Steps
As far as the layoffs are concerned, the ministry stated that all parties are intent on reaching a resolution in the near term though there has not yet been a date set for the next round of trade union talks.
“During the meeting, the company repeatedly demonstrated openness and willingness regarding the entire proposed framework, seeking to find a sustainable compromise to safeguard jobs and the supply chain, while also aiming to protect the necessary economic/financial balance,” Natuzzi said.